Avon Can Ring Up More Gains

Shares should continue to rise thanks in part to effective cost-cutting.

Investors are applauding Avon's continuing makeover, as the beauty-products company announced further cost-reducing measures.

Early Monday, Avon Products (ticker: AVP) said it would reduce its global head count by more than 400 (out of a total of 39,100 employees), restructure operations in Europe, Middle East and Africa, and exit Ireland entirely.

The company will record a charge of about $20 million in the first quarter...